Question
[The following information applies to the questions displayed below.] On January 1, Year 1, a company purchased equipment for $130,000. The estimated service life of
[The following information applies to the questions displayed below.] On January 1, Year 1, a company purchased equipment for $130,000. The estimated service life of the equipment is 10 years and the estimated residual value is $9,000. The equipment is expected to produce 300,000 units during its life. Required: Calculate depreciation for Year 1 and Year 2 using each of the following methods.
2. Double-declining-balance. Double-Declining-Balance Method Formula = Depreciation Expense Amount for Year 1 % = Amount for Year 2 % =
3. Units of production (units produced in Year 1, 35,000; units produced in Year 2, 30,000). Note: Round "Depreciation per unit rate" answers to 2 decimal places.
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